League City Council: Tax rate too low

MARY ALYS CHERRY

Published 7:00 pm, Sunday, September 30, 2001

The new rate is still slightly lower than last year's 66.75 rate to fund the city's $38 million budget.

Council set the tax rate at 65.5 cents at its Sept. 11 meeting with Mayor Tommy Frankovich breaking a tie and voting with Councilmembers Keith Dill, Darlene Anene and Hamid Kantara on first reading of the ordinance. Councilman Tad Nelson was absent from that meeting.

But after city finance officials expressed concern over dwindling monetary reserves, council began to rethink the matter with several vote switches at the Sept. 18 meeting.

After the levy proposal failed its second reading with only Dill, Anene and Kantara favoring it, Councilman Ed Sebasta proposed the 66.25 rate, which subsequently passed.

Joining him in voting 5-2 for the 66.25 rate were Tad Nelson, Katie Benoit, Barbara Meeks and Kantara.

When warned about the possibility of the city's reserves falling short, Dill said that "depends on what council may wish to fund."

At one point, Frankovich pointed out the need to give city employees raises.

When financial officials spoke out about the "dwindling reserves" the city would probably face in a couple of years, Dill asked, "Is this just about 2004 or our taxes?"

He continued throughout the meeting to push for the lower 65.5 tax rate, noting that the "citizens want us to spend their money wisely."

With the 65.5 rate, he said, "I think the citizens would fair better. Lower taxes mean high revenues," he continued, adding that plans are in the works this year to build 2,000 houses in League City.